Off-Exchange Cost LESS Than On-Exchange Plans.

[AllenChicago]

It's turning out that plans sold by companies not participating in state exchanges are costing less than the same plans being sold by companies that are participating in state exchanges. All the more reason for higher-income people to shop outside of the exchange. They will avoid the government scrutiny, save money and in many cases, have a larger medical provider network.

This HealthPocket study has a chart that compares Exchange vs Non-Exchange in 10 states where premiums are known. (The title inaccurately says "Some". Actually, Non-Exchange costs less in 9 out of the 10 states studied.)

Link: Some off-exchange health plans cheaper than state exchange plans « IFAwebnews.com

By the way, for those of you who live in States where 2014 Premiums are known, what feedback are you getting when you tell clients and/or prospects the premium they will pay? Are people thankful that they're "lower than expected", like the media and liberal pundits keep saying that they are, in state after state?

ac

 

[Ann H]

That is interesting, but I think they are saying they are comparing 2013 premiums. They are wondering if the trend will continue that these carriers (who are not going to participate in the exchange) will still show cheaper premiums in 2014.

 

[cadylou]

The theory is that higher risk clients will hit the exchanges first. Companies believe that off-exchange programs will attract healthier clients who most likely have had continuous coverage. Not too much of a reach . . . .In my market - very few have agreed to participate in the Federal exchanges for that reason.

 

[taterpeeler]

There will be very little off exchange biz in 2014. That's why the premiums are lower

 

[somarco]

I suppose we will have to see what happens.

Exchange business (at least with most carriers) will have very tight networks and Rx formulary's which should, in theory at least, lead to lower rates.

Off exchange business will have broader networks and "richer" plan. Carriers that only offer off exchange business will have a bit more flexibility and fewer cash flow issues.

Exchange blocks will probably have higher loss ratio's since low income groups typically generate more claims and higher claims.

One thing is almost certain. Whatever your "go to" carrier is for 2014 will probably not be as strong in 2015.

 

[benwrigh]

It's turning out that plans sold by companies not participating in state exchanges are costing less than the same plans being sold by companies that are participating in state exchanges. All the more reason for higher-income people to shop outside of the exchange. They will avoid the government scrutiny, save money and in many cases, have a larger medical provider network.

This HealthPocket study has a chart that compares Exchange vs Non-Exchange in 10 states where premiums are known. (The title inaccurately says "Some". Actually, Non-Exchange costs less in 9 out of the 10 states studied.)

Link: Some off-exchange health plans cheaper than state exchange plans « IFAwebnews.com

By the way, for those of you who live in States where 2014 Premiums are known, what feedback are you getting when you tell clients and/or prospects the premium they will pay? Are people thankful that they're "lower than expected", like the media and liberal pundits keep saying that they are, in state after state?

ac

In Indiana, as long as was reading the filing right, Anthem's off exchange rates are actually higher.

 

[RayNY]

NY, rates are semi-known (released in a grid of "lowest cost by tier/region/carrier", nothing released on 80% of filed plans, no plan descriptions/networks/etc).

Small business people only care about the administrative headache of switching plans. The changes to the benefits they could care less about, and the prices haven't really changed. Nothing is rocking the boat.

On the individual side, the rates legitimately are much lower, but few people care, because few people have individual at all over here. The few people that have it are smart enough to recognize that what the state released is an inaccurate and incomplete snapshot of what will be available Oct. 1.

The uninsureds who will be mandated to have this care, have no clue about it or opinion beyond what their political party is saying. Most are shocked to find out there is no "free Obamacare".

 

[houcoogster]

Aetna pulled out of New Jooyze

Can't blame 'em ....has it looks like they're snake bit.
Aetna pulls out of New Jersey's Obamacare exchange | KETK | East Texas News, Weather and Sports | Tyler, Longview, Jacksonville